abstract
Whether the product price increases customer satisfaction or rather decreases it has been actively debated
for some time. A non-linear correlation between the hotel price and guest satisfaction, explored empirically
in this paper, implies that the two phenomena are actually not inconsistent with one another At the
low price level, room price and food and beverage (F&B) price leads to an increase in guest satisfaction
whereas the high price level could have just the opposite effect The results suggests an inverse U shaped
relationship between price level and guest satisfaction On the other hand, the room price guest satisfaction
link could be affected by the moderating influence of room occupancy to be a U shaped function This
paper reports results from a study on the influence of hotel pricing on guest satisfaction in the context of
room products and F&B products in Taiwanese international tourist satisfaction It is found that the hotel
pricing has a quadratic effect on guest satisfaction